• Telcos’ core network spending is rising faster than radio access investment
  • 5G standalone adoption is driving new infrastructure priorities

What happened: Core investment rises as 5G SA gains traction

Telecom operators are directing more capital towards their core networks as standalone 5G (SA) deployment gathers pace. Recent analysis indicates that spending on core infrastructure is growing more quickly than investment in radio access networks (RAN).

This shift reflects the increasing importance of cloud-native cores, which enable advanced 5G features such as network slicing and low-latency services. While early 5G rollouts focused heavily on non-standalone (NSA) architecture, operators are now prioritising SA to unlock new revenue streams.

Vendors supplying core technology are benefiting from this trend, as operators modernise legacy systems and adopt software-driven architectures. The report suggests that this rebalancing of spending marks a structural change in how networks are built and upgraded.

Also read: EE launches standalone 5G core across UK

Also read: Telcos capex shift to cloud, AI, and core networks as RAN spending stays muted

Why this is important

The move towards higher core spending signals a deeper transformation within the telecoms industry. For years, network investment centred on expanding coverage and capacity through RAN upgrades. Now, the focus is shifting towards intelligence, automation, and service flexibility.

Standalone 5G is central to this change. It allows operators to deliver enterprise-grade services, including private networks and edge computing. These capabilities are essential for industries such as manufacturing, healthcare, and logistics, where reliability and low latency are critical.

This trend also aligns with broader industry moves towards virtualisation and cloud infrastructure. Many operators are partnering with hyperscalers to deploy core functions in distributed cloud environments. This approach reduces costs and improves scalability, but it also increases competition and complexity.

At the same time, the shift may reshape vendor dynamics. Traditional RAN suppliers could face slower growth, while core and software-focused companies gain influence. As 6G research advances, the importance of a flexible and programmable core will likely increase further.

For consumers, the impact may be less immediate, but it underpins future services such as immersive applications and smarter connectivity. The growing emphasis on the core suggests that the next phase of 5G will be defined less by speed and more by capability.